AutoBeta(AutoBeta.net)01/03 Report--

Since the second half of 2019, due to the tightening of policy subsidies, the performance of the domestic new energy vehicle market has declined for several months in a row, such as BAIC Blue Valley and many other new energy vehicle companies that were originally profitable. A few days ago, BAIC Blue Valley announced that it had received another 300 million yuan in incentive funds for high-tech industries, and planned to be included in the total profits in 2019.

On January 1 this year, BAIC Blue Valley announced that BAIC Blue Valley New Energy Technology Co., Ltd. recently received the Beijing Economic and technological Development Zone Financial Audit Bureau on the allocation of BAIC Blue Valley New Energy Technology Co., Ltd. notice of incentive funds for sophisticated industries allocated 300 million yuan.

The company said that the impact of the above government subsidies on the company's total profits in 2019 is expected to be 300 million yuan, which is proposed to be included in other income subjects. It means that the amount of this award will help BAIC Langu turn losses into profits in the first three quarters.

According to BAIC's third-quarter results, the total revenue in the first three quarters was 17.484 billion yuan, up 78.64% from the same period last year, but the attributable net profit was still at a loss of-270 million yuan, compared with 130 million yuan in the same period last year, down 303.55% from the same period last year. And this 300 million yuan of outstanding reward to the account, will achieve the net profit of the first three quarters to turn into profit.

As 2019 has just passed, BAIC Blue Valley has not yet released fourth-quarter results, but judging from the market performance after September, the new energy vehicle market has not improved. BAIC's new energy series, which had accumulated sales of 98381 vehicles in the first three quarters of 2019, up 24.4 per cent from a year earlier, fell further in October and November, falling more than 60 per cent for two consecutive months, resulting in sales of 114000 vehicles in the first November and a decline of 11.20 per cent. Therefore, it can be predicted in terms of sales performance that BAIC Blue Valley will continue to lose money in the fourth quarter.

In fact, BAIC New Energy, owned by BAIC Blue Valley, has been receiving a lot of subsidies in 2019. According to incomplete statistics, BAIC New Energy has received support funds of more than 879 million yuan in 2019, all of which are included in 2019 profits.

Under the rapid growth in 2018, BAIC new energy production and sales reached 160000 vehicles, and set a target of 220000 vehicles in 2019, but judging from the current completion rate of 52% of BAIC new energy, it is clear that the annual target can not be achieved.

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